TY - RPRT AU - Addison, John T. AU - Blackburn, McKinley L. AU - Cotti, Chad TI - New Estimates of the Effects of Minimum Wages in the U.S. Retail Trade Sector PY - 2008/Jul/ PB - Institute of Labor Economics (IZA) CY - Bonn T2 - IZA Discussion Paper IS - 3597 UR - https://www.iza.org/publications/dp3597 AB - This paper examines the impact of minimum wages on earnings and employment in selected branches of the retail-trade sector, 1990-2005, using county-level data on employment and a panel regression framework that allows for county-specific trends in sectoral outcomes. We focus on particular subsectors within retail trade that are identified as particularly low-wage. We find little evidence of disemployment effects once we allow for geographic-specific trends. Rather, in many sectors the evidence suggests modest (but robust) positive employment effects. One explanation we consider for these ‘perverse’ effects is that minimum wages may have significant influences on product demand shifts. KW - right-to-work states KW - minimum wages KW - wages and employment KW - county-level data KW - unions KW - spatial trends KW - border county analysis ER -